Premier Oil greenlights new gas project in the North Sea

UK oil producer Premier Oil has confirmed it will commence the development of the Tolmount Main gas field in the Southern North Sea, the largest gas basin in the UK’s continental shelf.

The FTSE 250 firm has moved the project into execution phase and hopes to begin construction of the facility later this year. First gas production is anticipated by the fourth quarter of 2020.

The project has been estimated to produce around 500 billion cubic feet of gas over its lifespan, with peak production rates slated to be around 300 million cubic feet per day.

Premier owns 50% of the Tolmount project alongside 50:50 partner Dana Petroleum, with the former expected to spend US$120 million on development capital, comprising of project management and development drilling costs.

“The sanction of our high return Tolmount project marks a major milestone for Premier and underpins our medium term UK production profile,” said Premier’s chief executive Tony Durrant.

“Tolmount is one of the largest undeveloped gas discoveries in the Southern North Sea and is, in barrel of oil equivalent terms, similar in size to our Catcher project.”